(TCO H) Al and Amy file a joint return for the 2007 tax year. Their adjusted gross income is $80,000. They had net investment income of $9,000. In 2007, they had the following interest expenses: Personal credit card interest $4,000;
Home mortgage interest $8,000; and
Investment interest (on loans used to buy stocks) $10,000.
What is Al and Amy's interest deduction for the 2007 tax year? ( 1- $17,000
(TCO B) Charitable contribution deductions for Capital Gains Property made by individuals without a reduction for long-term capital gains to public charities are limited to:
1- 50% of AGI
2- 40% of AGI
3- 30% of AGI
4- 20% of AGI
(TCO A) The following taxes were paid by Tim: Real estate taxes on his home: $1,000; State income taxes: $900; and State gasoline tax (personal use of automobile): $150.
In itemizing his deductions, what is the amount that Tim may claim as a deduction for taxes?
The solution computes accounting problem of Questions TCO A, TCO B & TCO H.